Rural Electrification Targets for 2010

Rural Electrification (RE) strategy is intended to address emancipation of the majority of Ugandans, in consonance with the Poverty Eradication Action Plan (PEAP), with government steering the drive while at the same time recognising global energy trends, targeting greater countryside access to grid electricity in the first instance, supplementing it with other environment friendly sources.

Toward this end, the Rural Electrification Agency (REA) is already in place to take charge of the process, with the master planning process contract already signed between the contracting parties, government and firms to provide the service led by M/s IT Power of United Kingdom.

Strategies

Key strategies are briefly elaborated hereinafter.

Reducing Burden of poverty

Poor access to good energy sources by the majority of nationals for absence of physical facilities, high end-user costs, inadequate resources and awareness amongst others call for government intervention.

More balanced rural versus urban resource sharing

Imbalances in capacity to reach and afford services of different levels in the social strata are often more pronounced in relatively 'young' economies, placing a greater challenge on the central government to intervene appropriately, the route the country is pursuing.

Rural Electrification Master Plan

As a result, a blueprint of schemes to be undertaken has been agreed and implementation is already started.

Market Driven Prices - Reflect Cost of Service Delivery

There has been public concern on cost of services, initiated at the centre, with legislators dwelling at set tariffs. It is however being agreed at that level, or more correctly, consensus is building, to the effect that the structures as legislated need to be allowed to take their course with minimal intervention, allowing the structures established in the world today to 'derive' appropriate prices, allowing the sector to be buoyant, with the regulatory authority ensuring a fair playing field.

The Rural Electrification Fund

The role of government to ensure that the ordinary Ugandan is enabled to benefit is in part being addressed through a fund, to ensure services are brought nearer to the public at large in the countryside. Government has in this regard already secured support from various sources to compliment its efforts. It has therefore been able to commence implementation of programs, while some others are still awaiting additional resources.

Small Scale Power Generation

The limitations of 'only being able to extend an existing grid to its environs' imply that places distant from it need other considerations, hence this option where potential exists. This option has been on the table for some time now and is partly implemented, but is more prospective for development in the present setting.

Solar PV Systems

This option is already gaining ground, being easier to implement at end-user level. Private efforts are being encouraged, and, government is only going to further facilitate this, having already adopted it for particular applications where other options have not been available to date.

The position of Uganda in the neighbourhood of the equator make exploitation of this option much more attractive, further enhancing viability of such projects.

Regulation of Rural Electrification Projects

Very much like the Electricity Regulation Authority (ERA) in the setting of the downstream Uganda Electricity Board (UEB) activities, rural electrification needs urgent government attention if anticipated synergies are to be realised. This area is indeed receiving world-wide attention, given the strong role governments have to play, even in developed countries, where appropriate policies are put in place to steer 'environmentally viable long-term practices' to fruition.

Targets and Implied Funding

The targets indicated hereinafter are 'lifted' wholesale from the 'Rural Electrification Strategy and Plan for 2001 - 2010' of February 2001 by the Ministry of Energy and Mineral Development.

To achieve these targets, the fund will require an estimated US$ 125 million in grants, amounting to US$ 12.5 million p.a. based on US$ 400 - 800, US$ 2,000 - 3000, and, US$ 1,000 - 2,000 per connected household for PV, mini-grids, and, grid extension respectively.